Wireless Phone Insurance

You’ve been presented with this option before. You walk into the store, sign your new contract, and get your bright and shiny new phone. And then you’re hit with the question. Do you want the wireless insurance with that?

Well do you? That’s up to you to decide. I’m not your mother. But I can help inform you so you’re able make the proper decision. A decision that even your mother would be proud of.

So here’s the dilly yo. Wireless insurance from the big four cost cost roughly $6 a month. This can change slightly between carriers. Verizon also has a premium device and tablet cost. This is a per line cost, meaning you have to pay the insurance for each phone, not for each plan. Each insurance plan has maximum use of two claims per 12 months, meaning you can use it twice per year. When filing a claim you have to pay a deductible. That deductible ranges from $39, up to $125, depending on which carrier and which phone you have. Typically smart phones have a higher deductible. All though agents typically sell their own policies, the big four partner with Assurion. This means that the insurance is a third part company and not through your carrier. If a claim needs to be filed the replacement must be mailed to you.

Ok. We have the normal stipulations and little jibbery jab over with. You’re educated on what the insurance is and how it works. So when is it a good idea to get, or not?

That’s for you to decide. But working in the industry, I can give a few good ideas and examples to better guide you young one.

You have to have that smart phone. You crave it. But you’re clumsy. You break everything in site. If this is you, insurance might be a good option. To replace a smart phone you’re looking at spending $350 or more. Feature smart phones cost closer to $600 or more outright. Insurance costs roughly $5 a month, plus roughly $50 for the deductible.

If you work in an environment that is rough, or has a lot of liquid or air moisture, you may want the insurance. You would be surprised how quickly those dots turn red. Heavy moisture in the air can liquid damage a phone quickly.

If you spent $50 for a phone on contract through T-mobile or AT&T I wouldn’t buy the insurance. You can always purchase a prepaid phone and stick your sim card in it and be good to go. This won’t work Verizon or Sprint though. They lock out the serial numbers for their prepaid offerings.

If your comfortable with a used phone you may not want to purchase the insurance. You can often buy a phone from Craigs List or Ebay for a much, much cheaper cost then buying one new and outright.

Look at it this way. If you spend $5 a month for 24 months and pay a $50 deductible once per year to have a total of two exchanges, you are spending about $220 every two years. You can usually find an older smart phone or regular feature phone on Craigslist for between $100 and $200. So weigh the price option when you make your decision. How rough are you on phones. How many times do you expect to replace the phone, realistically.

And now you know, and knowing is half the battle.